Paramount Nixes Idea of Selling Majority Stake in BET for Now
It looks like Paramount Global is ready to walk away from the negotiating table. According to the Wall Street Journal, Paramount has abandoned its plans to sell a majority stake in BET Media Group, which incorporates the cable channels BET and VH1 as well as the streaming platform BET+.
Discussions about a sale of BET Media Group first arose in March, and numerous bidders have had reported interest, including Allen Media Group mogul Byron Allen, pop culture figures like Shaquille O'Neal and 50 Cent, and current BET+ minority owner Tyler Perry.
But the deadline for final bids has come and gone, and apparently Paramount hasn’t seen the numbers it was hoping for from these potential buyers. Now it will have to decide how best to deploy the assets it has in BET Media Group; the original thought behind the sale was to help Paramount focus all of its streaming efforts on Paramount+, which is why it has also reportedly given some thought to selling its kid-focused streamer Noggin.
Paramount Global reported a net operating loss of nearly $300 million in the second quarter of 2023, but its streaming division increased revenue by 40% year-over-year from 2022. It didn’t hurt that the company added 700,000 streaming subscribers between April and June of this year. The company is facing the same challenges most other streaming providers are currently grappling with in how to make their streaming platforms profitable.
Part of that equation is the removal of shows and movies that don’t drive enough engagement, which always causes some level of fan consternation. But Paramount did just that this summer, pulling titles from Paramount+ that it determined would not help it retain existing customers or attract new subscribers in the future.
The company has also streamlined operations by integrating its SHOWTIME streaming service with the ad-free tier of Paramount+, helping it to cut down on redundancies and giving it an excuse to raise the price. Paramount also increased the subscription cost for the ad-supported tier of Paramount+, though, at $5.99 per month, it still remains one of the cheapest services in the industry.
So for now, BET will stay with Paramount. If the company gets an offer it can’t refuse it will likely revisit sale talks, but until then it will have to decide how BET and BET+ fit in its plans to make Paramount+ with Showtime its streaming centerpiece moving forward.
Paramount Plus
Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr. and more. The lineup includes “1883,” “Tulsa King,” “Star Trek: Discovery,” Nickelodeon’s “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime.